Mr Wise said he gave "former close friend" Tony Jimenez £500,000 to invest in a golf course in France.
He claimed that the "agreed purpose" was not fulfilled and said he was entitled to have the money back.
Mr Jimenez disputed Mr Wise's claim and said the money was invested in the golf course development in Les Bordes as agreed.
Judge Penelope Reed QC ruled in Mr Wise's favour after a High Court hearing in London, and told Mr Jimenez to pay compensation.
Mr Wise played for Wimbledon and Chelsea. Mr Jimenez is a co-owner of Charlton. They previously worked together on the board of Newcastle United.
Judge Reed analysed evidence from both men after a hearing which started in June. She said Mr Wise, 46, had been subjected to long "sometimes aggressive" questioning but had come across as a "truthful witness". She had treated Mr Jimenez's evidence with "extreme caution".
"I consider that Mr Jimenez received the sum of £500,000 from Mr Wise for a specific purpose and he has not satisfied me on the balance of probabilities that he has fulfilled that purpose," said the judge.
"He is liable to pay equitable compensation to Mr Wise in the sum of £500,000 together with interest."